The on-chain patterns of the top two stablecoins by market cap could hint at when the crypto markets are gearing up for another leg up in price, according to the analytics firm Santiment.
Santiment says in a new analysis that traders should monitor Tether (USDT) and US Dollar Coin’s (USDC) supply on exchanges because that metric can indicate when there’s “something brewing” with crypto asset prices.
“Especially when USDT and USDC supplies are being moved rapidly to exchanges, as we saw with USDC in March right before the market-wide price surges.”
The analytics firm also notes that traders should pay attention to whether the top 10 largest USDT and USDC addresses are adding stablecoins.
Additionally, Santiment suggests that traders monitor the mean dollar invested age of Tether and USDC. The mean dollar invested age is the average age of all tokens on the blockchain weighted by the purchase price.
“Mean dollar invested age is what we would call a ‘validator’ metric. When the curve of this line begins moving down, it’s indicating that any upswing in crypto markets is being validated by dormant coins moving to push up prices even further in the future.
And in the case of stablecoins, movement of older coins that had been stagnantly sitting in wallets is generally a very good sign.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney